I've been toying with the idea of getting into the mortgage business. Are there any members who do this in Virginia? Can you give me an idea of the licensing requirements and what the structure is like for generating leads? Are there any fees that are associated?

I'm in real estate now and getting tired of it.

Just trying to get some ideas from those in the business.

redsk1

01-22-2007 01:04 PM

Re: Any Mortgage Loan Officers/Brokers here?

I am a mortgage banker in VA. This is my 6th year in the business. I really like the mortgage business but it's very competitive and can be very cutthroat. In general, their are no licensing reqt's (kind of scary) and you will be 100% commission (but you are most likely used to that).

As far as leads are concerned every LO does it differently so you will have to determine your best way: realtors, networking groups, friends/family, advertising, purchasing leads, and so on. Be prepared to invest in yourself and your business, b/c you are basically self employed. This is of course, if your company doesn't provide you leads.

You can do well in the mortgage business, just don't believe it when some tell you it's easy and you can make a ton of $ in your first couple of years. Some can, but for the most part its a struggle to survive. It takes alot of hard work and patience but it can be done. Hope this helps.

Redskins_P

01-22-2007 01:06 PM

Re: Any Mortgage Loan Officers/Brokers here?

Beem, I work for a mortgage company in Tysons Corner. I'm not a LO, but I do work closely with them. I'm in the marketing dept.

As for leads, it depends. There are two types of Loan officers....Wholesale and Retail. Wholesale LO's get their leads from other brokers, while Retail LO's work w/ RE agents get their leads thru them/word of mouth.

If you don't want to pay for your marketing, the best way to go is Wholesale. Most companies provide you w/ your marketing and they can help you create flyers, etc.

Let me know if you have anymore questions...

Redskins_P

01-22-2007 01:07 PM

Re: Any Mortgage Loan Officers/Brokers here?

As for the Licensing....you have to pass a test for certain States to get licensed.....

Beemnseven

01-22-2007 02:10 PM

Re: Any Mortgage Loan Officers/Brokers here?

Cool guys, thanks for the info.

Redsk1, I know what you're talking about as far as being your own employer-running your own business. That's where the real estate field and mortgages are similar -- I assume you're considered an independent contractor? Doing your own marketing, that sort of thing -- I feel like I'm pretty prepared for that.

Redskins_P: By wholesale and retail, is that the same as the difference between working as a broker and working as the lender directly? As I understand it, the brokers go to other lending institutions -- banks, Wells Fargo, Citi -- they act as sort of a middle man, and there are generally more fees involved that are charged to the buyer on the HUD. Whereas the mortgage loan officers who work for the large lending institutions themselves are actually the direct source. Have I got that right?

It just seems like there would be more overall volume in sales with mortgages, i.e., the client that you performed for with the original loan ideally will come back to you to refinance -- almost like a "double dip" so to speak. Real estate agents only get repeat customers when they decide to move. There's also a slew of fees for realtors -- NAR dues, MLS fees, key pad fees...

That, in addition to the fact that you don't have to drive all over creation for the right mortgage the way you have to do that to find just the right house for your clients seems like a huge headache to avoid.

Redskins_P

01-22-2007 02:40 PM

Re: Any Mortgage Loan Officers/Brokers here?

[QUOTE=Beemnseven;271557]Cool guys, thanks for the info.

Redskins_P: By wholesale and retail, is that the same as the difference between working as a broker and working as the lender directly? As I understand it, the brokers go to other lending institutions -- banks, Wells Fargo, Citi -- they act as sort of a middle man, and there are generally more fees involved that are charged to the buyer on the HUD. Whereas the mortgage loan officers who work for the large lending institutions themselves are actually the direct source. Have I got that right?.[/QUOTE]